I’d like to talk today about pension options if you have been made redundant or taken redundancy.
If you’re 50 or over you can access the pension, you can draw down the tax free lump sum and transfer the balance to an ARF or Annuity.
If you need additional cash that’s a good option.
If you don’t I think it’s better to leave the fund available for retirement as a retirement income.
If you’re not 50 then your options are you could transfer it to a personal retirement vehicle, like a Retirement Bond or a PRSA.
That allows you to track and manage the pension as part of your retirement plan.
There is some admin to be done in terms of making the transfer.
You can leave the pension on the scheme, obviously, there’s no admin with that.
I tend not to recommend that as I’ve seen too many people lose track of pensions and they can be difficult to find and sometimes they can’t be found at all.
The last option is to transfer onto a new company pension if you have moved and found another role with a pension scheme or if you do in the future you can make that transfer and there’s no time limit in terms of doing it.
Then you keep everything amalgamated and under one roof.
Other considerations will be just in some older pension schemes you can have restrictions in terms of a transfer or availing of early retirement, and also just to double check if there’s any costs associated with making a transfer out of the pension scheme, and the fund options available to where you’re transferring the money to or the pension too.
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